On Feb 15., representatives from the government of Ontario and ArcelorMittal Dofasco announced a $500 million investment to boost manufacturing and reduce greenhouse gas emissions in the province’s auto sector and steelmaking industry.

The goal is to transition the coal-fed coke ovens and blast furnaces with new, low-emission technology at Dofasco’s Hamilton facility and make the shift to direct reduced iron and electric arc furnaces.

Hamilton is the largest flat-rolled steel producer in the country and Dofasco alone has been producing steel for more than 100 years, employing about 4,600 people.

The investment follows a $400 million investment by the federal government in July 2021, both of which are part of the project that is expected to total $1.8 billion. According to ArcelorMittal, the project “was contingent on support from the governments of Canada and Ontario,” which “secures project funding and firms up the investment.” Dofasco emits approximately five million tonnes of CO2 emissions per year and the project, which is scheduled for completion in 2028, aims to reduce CO2 by three million tonnes annually.

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“If the car of the future is going to be electric, then the steel it's made with needs to be electric too,” said Vic Fedeli, Minister of Economic Development, Job Creation, and Trade. “With this once-in-a-generation investment, the car of the future will also be low-carbon before it even rolls off the assembly line. It’s a major turning point for the Ontario auto sector.”

This marks phase two of the province’s Driving Prosperity ― The Future of Ontario’s Automotive Sector plan, which is pushing the auto sector to build electric, low-carbon, connected and autonomous vehicles. It is also committed to attracting investment, creating more jobs and helping Ontario reach its greenhouse gas emissions target by 2030.

 “I think going green is a critical part of our future,” said ArcelorMittal Dofasco president and CEO Ron Bedard. “Our customer base demands it, the community that we operate in demands it, and in terms of our employee base, our employees expect it from us. We want to be on the leading edge of that.”

When asked about funding for other steelmakers in Ontario, Premier Doug Ford said the province is in discussions with Algoma Steel – who received a $420 million federal investment in July as well – but his focus is currently with the people of Hamilton.